Anonymous
Why is Lion-OCBC Hang Seng Tech ETF plunging since early this month? Should I still continue buying in the dip?
If you were me (who had invested in the ETF @ 1.635), will you continue to buy into the dips given that the share price dropped by ~5% everyday since last week?
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Chris
08 Mar 2021
Owner and Writer at Tortoisemoney.com
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Disclaimer: The following views are merely my own opinions and should not be construed as financial advice. Please dyodd.
If you have your:
Emergency fund settled
Insurance settled
Job is stable
Then yes, I would advise you to continue buying the dips. I do believe that the holdings in the ETF are being oversold due to indiscriminate market-wide selloffs. Do also understand that US tech is often more highly valued (read: overvalued) than Chinese/HK tech. As such, I do think it's quite unreasonable for the Hang Seng tech ETFs to fall 26% if we look at the fundamentals, especially compared to the relative fall of ARKK (25% drop), even though ARKK holds names that are quite possible much more overvalued (and I say that as a big holder of high growth names with ridculous P/S ratios hahaha).
So, yes, if I were you I would buy the dips as long as my cashflow is steady. Bull runs are where money is made, but dips are where the seeds are planted.